Conflux is a blockchain technology that allows for the creation of decentralized applications with high performance. It employs a unique tree-graph consensus mechanism that enables horizontal scaling and permits infinite transactions per second.
The network is currently trading at a value of around $0.28 and its trading volume stands a little over $500 million. The cryptocurrency ranks 77th among all cryptocurrencies and has a market capitalization of around $570 million.
The price of Conflux (CFX) has experienced a substantial increase in value lately, rising by 24.91%, 41.09%, and 15.95% consecutively each day after it rebounded from the 50-day EMA on March 12. However, as of today (at the time of writing), the current price has fallen back to around $0.28, resulting in a decline of 6.43%.
SVB: After the biggest banking crash since 2008, what happens next? https://t.co/OaXViEanQr— City A.M. (@CityAM) March 14, 2023
As the banking sector crisis continues, investors are turning to alternative options for investing and storing their wealth, leading to a resurgence in Bitcoin and other cryptocurrencies in the market.
This article aims to examine the latest happenings in the cryptocurrency market and assess their influence on the value of Conflux. Additionally, it will include a technical evaluation of the coin's performance, predict Conflux's price, and offer a summary of where the price may be headed in the future.
Growing Demand for China-Related Blockchain Technology
Conflux's recent surge in value is said to be primarily due to the legalization of cryptocurrency trading in Hong Kong, according to analysts. However, it remains unclear whether these reports are accurate or just rumors. Nevertheless, traders and investors have observed a significant increase in the cryptocurrency's value, which has risen by over 90% in the last four days as of writing.
#China will speed up its layout in the metaverse sector, bolster the construction of new infrastructure including #5G, #blockchain and industrial internet, as well as strengthen regulations to promote the healthy development of the #metaverse. pic.twitter.com/YpsMrMjUYy— China Economy (@CE_ChinaEconomy) March 10, 2023
Being the initial blockchain that follows regulatory prerequisites in China, Conflux is favorably positioned to benefit from an apparent relaxation of Chinese limitations and regulatory clearance.
U.S. Federal Reserve’s Cautious Approach
The speculation that the U.S. Federal Reserve won't act as aggressively as previously assumed in tackling inflation also contributes to Conflux's recent price surge. As most analysts anticipate that the central bank will adopt a more cautious stance owing to changing market conditions, investors are increasingly optimistic about cryptocurrencies, including CFX.
Last month, the U.S. economy added more than 300,000 jobs.— Judy Chu (@RepJudyChu) March 13, 2023
By investing in America through the American Rescue Plan and the Bipartisan Infrastructure law, @POTUS and @HouseDemocrats are delivering for working class and middle-income Americans. https://t.co/9XvqqjBzvy
Based on recent data, the U.S. economy added more than 300k jobs in February, and wage inflation is currently declining. Furthermore, the Consumer Price Index (CPI) figures released on March 14 indicated that inflation in the United States had decreased to 6%, compared to the 6.4% rate in January.
Conflux Technical Analysis: Navigating the Current Market Landscape
It is crucial for traders to comprehend the essential indicators to make more informed decisions regarding Conflux's recent price movements. The vital technical indicators include Relative Strength Index (RSI), Exponential Moving Averages (EMAs), volume analysis, and Moving Average Convergence Divergence (MACD). It is also essential to consider the critical support and resistance levels.
Relative Strength Index (RSI)
Conflux's Relative Strength Index (RSI) is currently at around 67.22, which is nearing the overbought region. This indicates strong buying pressure in the market, but it also suggests that there may be an upcoming correction or consolidation phase.
Exponential Moving Averages (EMAs)
Conflux's 20-day EMA is presently at approximately $0.2141, while the 50-day EMA is just around $0.1650, and the 100-day EMA is at a level of $0.1190. All three EMAs show a positive trend, with the 20-day EMA trading above the 50-day and 100-day EMA, indicating a bullish market sentiment. The current price of Conflux is around $0.28, which is higher than all significant EMAs. This indicates that the ongoing uptrend may continue in both the short and long term.
At present, Conflux's trading volume is 909.555 million, which is lower than the previous day's volume of 1.206 billion. Nonetheless, the volume moving average is 449.417 million, indicating that the overall volume trend remains strong. The recent high volume observed during the upward price movement suggests that there is significant interest in Conflux.
Moving Average Convergence Divergence (MACD)
The previous day's MACD histogram was 0.0015, and as of now, the current day's MACD histogram stands at 0.0064. This is a bullish signal as the MACD line has surpassed the signal line, indicating that there is potential for further upward movement in the Conflux market.
Support & Resistance Levels
Conflux's immediate resistance is at the Fib 0.786 level, currently at around $0.2991, followed by $0.3669, which was the highest point recorded in several months on February 21. The cryptocurrency retested this level earlier today when it reached an intraday high of $0.3665. Nevertheless, the price faced selling pressure immediately afterward, causing it to drop to its current level, that’s a little over $0.28.
If Conflux surpasses the resistance level of $0.3669, it could reach the next potential resistance at the extended Fibonacci level of 1.272 at $0.4531. Alternatively, the Fib 0.618 level at $0.2458 offers immediate support if the price falls.
At present, the market sentiment for CFX appears to be bullish due to the positive Exponential Moving Averages (EMAs), Relative Strength Index (RSI), and bullish Moving Average Convergence Divergence (MACD) signals, despite a price retracement. The RSI, which is approaching overbought territory, confirms the intense buying pressure behind the uptrend.
Traders should keep track of the support and resistance levels mentioned earlier to determine the ideal moments to enter and exit the market. Using effective risk management techniques and adhering to a disciplined trading strategy is also essential.